In the previous piece (buying a monthly-distribution fund with a Nomura Web Loan) I referred to “a monthly-distribution mutual fund”. This is the same thing, in more detail.
The example is the AB American Growth Fund D Course, monthly settlement, unhedged, projected-distribution type — one of the better-selling funds in Japan, and one I hold.
As always: this is a record, not a recommendation. I am not a financial professional.
The numbers, laid out
Figures published as at 10 September 2026.
- Inception: 16 September 2014
- NAV: ¥10,089 (10 September 2026)
- Net assets: about ¥2.73 trillion
- Management fee: 1.727% a year, tax included
- Settlement: the 15th of each month, as a rule
- Most recent distribution: ¥200 per 10,000 units (17 August 2026)
- Front-end load: 0% at online brokerages (no-load)
Put two of those lines next to each other
- Inception: 16 September 2014
- NAV: ¥10,089 (September 2026)
A Japanese mutual fund is normally launched at ¥10,000. So after about twelve years, the NAV is ¥10,089. Essentially flat.
That does not mean twelve years of making nothing. A monthly-distribution fund is built to pay out what the portfolio earns, every month. The NAV falls by what is paid out, so when gains and payouts hold each other in balance, the NAV tracks sideways.
But one fact does follow from it. This fund is not designed around NAV appreciation. What you get is essentially the monthly distribution. It is not the kind of product you hold and watch double.
What “projected-distribution type” means
The phrase in the fund’s name refers to a mechanism where the distribution amount is set according to the level of the NAV. High-NAV months pay more; low-NAV months pay less, or nothing.
So the same amount is not guaranteed each month. It has a different character from the steady recurring income the words “monthly distribution” tend to suggest.
And this matters: distributions split into ordinary distributions (paid from investment income, taxable) and principal refunds, known in Japan as special distributions (effectively your own principal coming back, untaxed). The same ¥200 can be either, depending on the NAV at which you bought. “It was untaxed” also means “that was my principal returning to me”.
Add the cost of the money
As in the previous piece, part of my holding was bought with money borrowed on a Nomura Web Loan. For that portion the arithmetic stacks:
- Borrowing rate: 2.40% a year (from 15 July 2026, variable)
- Management fee: 1.727% a year
- Total: 4.127% a year
The borrowed portion only moves forward above roughly 4.1% a year. Distributions plus NAV movement have to clear that. This is not a view on markets; it is subtraction.
When the rate was 1.90%, the same total sat in the 3.6% range. Half a point, and the bar is measurably higher.
Where you buy changes what you pay
One practical note.
The same fund carries different front-end loads at different distributors. Online brokerages sell it no-load; a face-to-face brokerage may charge.
That gap is why I buy at SBI Securities and then transfer the holding to Nomura. The transfer costs ¥3,300 including tax per fund, and the paperwork is on paper, unit counts written out by hand — and it is still smaller than the difference in front-end load. The Web Loan piece covers that in full.
Notes on this fund
- Fund: AB American Growth Fund D Course, monthly settlement (unhedged), projected-distribution type
- NAV ¥10,089 (10 September 2026); launched September 2014 at ¥10,000
- Management fee 1.727% a year, tax included
- Settles monthly on the 15th; the most recent distribution was ¥200 per 10,000 units. The amount moves with the NAV level and is not guaranteed
- Unhedged. A weaker yen helps, a stronger yen hurts
- Online brokerages charge no front-end load; face-to-face distributors may
- Caution: part of a distribution can be a return of principal. “Receiving money monthly” and “growing” are separate statements
- Caution: NAV, distributions and fees change. Always check the current prospectus and monthly report
The sensation of money arriving every month is a pleasant one, no argument. But whether that transfer is investment income or your own principal is not visible without looking at the statement. Not looking, and simply feeling that money comes in every month — that is probably the most dangerous position to be in.
This is a personal record, not investment advice, and not a recommendation to buy any particular fund. Figures are those published at the time of writing. Investment decisions are your own responsibility.
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